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Colt1911 [192]
3 years ago
6

A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren

t forward price for the 4-month forward contract is $42.75. The 4-month risk-free interest rate (with continuous compounding) is 7.90%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92
Business
1 answer:
padilas [110]3 years ago
8 0

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

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Answer:

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6 0
3 years ago
Calculate net worth using the following information. Assets Liabilities car - $3,500 car loan - $3,000 savings account - $1,000
raketka [301]
Ok, I'm going to tell you how to calculate it and the answer.
so what you do is add up your assets and then add up your liabilities.
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then you subtract 4,700 from 3,500 since your liability is a lower number.
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3 years ago
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Dennis_Churaev [7]

Answer:

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